As the two loyal readers of this blog may be aware, I have not posted in over a week! Ah! But fear not loyal reader, I am back now.
I spent most of the last week very busy at my job and my primary source of employment. Yes, not so much fun I know, but it was my evaluation week and I wanted to make sure that I did the best that I could possibly could (mission accomplished I hope). Since I am of course a prudent financial person, I knew that the best financial action I could take was to do well on this evaluation.
In my time sort of away, I have had a number of thoughts come to mind and the break was invigorating in many ways. I would like to announce a somewhat significant change in the format of this site, as I plan on focusing more and more on investment strategy and stock analysis. It is my hope that this will serve as a fun exploration over time, help folks better understand my analytical approach, and discover new knowledge with me.
I have to say that after reading a bit on investing strategy I have come to the definitive conclusion that I am a fundamental analyst, focusing primarily on the stock as a business enterprise. Also, I hope to take a long view, as investing is properly done with a long horizon allowing for smart decisions, patience, and the (eventual) sanity of the market to emerge.
However, since this is a journey I hope to share my investing journey with my readers over time, and update my thoughts as they evolve over time. For now, though, I must say that I, like so many before me, am incredibly impressed by the common sense of Benjamin Graham and Warren Buffett. Having just finished The Intelligent Investor, I can definitively say that he explains his evaluation model so simply and powerfully that there can be little doubt about its potential. The Buffett corollary to the Ben Graham principle, though, is to focus mostly on truly great businesses, as they are much better than nickel and dimeing through small little transactions of undervalued stocks (famously described by Buffett as “cigar butts”).
I am currently working on a spreadsheet and a model that I hope will help my readers to better process their investments. For many, I realize trying to pick individual stocks is a fool’s errand, as it is difficult to beat the index average (an index is of course where you simply buy the market or take the field, and enjoy the inevitable rise that American business always enjoys over time). So I hope that most of you will heed this advice, be careful, and think critically. Nonetheless, opportunity abounds and I hope you enjoy the journey of analyzing individual stocks and businesses with me.